The pound is well supported this morning as it continues to respond to Brexit news. Talks will wrap up in London today and move to Brussels tomorrow. Although there have been no breakthroughs yet, general optimism for a deal before the deadline remains.
It’s a different story for the euro, which is suffering due to news of potential lockdowns and increased restrictions in Europe. The European Central Bank will announce their decision on interest rates tomorrow and whilst rates are expected to be kept the same, any commentary from officials could have an impact on currencies, especially in light of the recent surge of COVID-19 cases.
The US election is now just days away. The polls point to a Biden win, but it’s thought that key swing states will ultimately determine the outcome. It is unclear how the result will impact sterling – some suggest that a win for Joe Biden could be positive for the pound, but this is far from guaranteed.
Forecasters for the world’s largest financial institutions have, over the past few weeks, been working out what all the competing factors might mean for sterling. We amalgamate their predictions – along with deeper analysis from our in-house analysts – in our Quarterly Forecast.
You can download it here.
I would urge you, however, to take any such predictions with a large pinch of salt. Although they make interesting reading – especially the analysis – we strongly recommend you protect your budget from any and all risk, by locking in an exchange rate you know you can work with.
Speak to your trader on 020 8108 5337 to do that.
Stay safe,
